II. THE ACT FOR DISPENSING WITH THE QUINQUENNIAL RETURNS OF SICKNESS AND MORTALITY.

In his report for 1880 the Chief Registrar stated that should the return for the quinquennium ending 31st December 1880 supply adequate data as to the duration of sickness, for which purpose a form had been specially devised, he was advised by the Actuary to the Central Office that the purpose for which the quinquennial returns of sickness and mortality were devised, viz., the collection of statistics on which to base tables for the use of Friendly Societies, would in his judgment have been fulfilled. The result of a preliminary examination of the new returns was, that on the 22nd May 1882 the actuary reported to the Chief Registrar, (1.) That the data already in the possession of the office were adequate for the purposes of the Act, and (2.) That there did not appear to him, as regards the societies themselves, any necessity for continuing in force the provisions of the Act relating to the making of quinquennial sickness and mortality returns. A copy of the report will be found in Appendix A. Concurring in the actuary's opinion, the Chief Registrar recommended to Her Majesty's Government the bringing in of a Bill to repeal so much of the Friendly Societies Act, 1875, as relates to the quinquennial return of sickness and mortality, which received the Royal Assent on the 10th August 1882, and will be found in Appendix B.

The obligation to make every five years a return of the sickness and mortality experienced by societies, it may here be observed, is one which has lasted half a century, having been imposed in 1829 for 1830 by the 10 Geo. 4, c. 56, and being now dispensed with, as from 1880. In the first instance, the return was made to the Clerks of the Peace, to be by them transmitted to one of the Secretaries of State, and submitted by him to Parliament. Before the first quinquennium was out, however, the 4 & 5 Will. 4, c. 40 (1834), directed the returns to be forwarded to the barrister appointed to certify the rules of Savings Banks (who by the Act now referred to became the Registrar of Friendly Societies). In 1846, by the 9 & 10 Vict. c. 27, a penalty of 5 l. was imposed for not sending the returns to the Registrar. By the 13 & 14 Vict. c. 115 (1850), the Registrar was directed to make and lay before Parliament abstracts of the quinquennial returns, and this provision was continued both by the 18 & 19 Vict. c. 68 (1855) and by the existing "Friendly Societies Act, 1875" (38 & 39 Vict. c. 60). In point of fact, however, no abstract was ever made or presented, beyond one for the quinquennium ending December 1850 (published 1852), until the presentation in 1879, by the present Chief Registrar, of the abstract for the four quinquenniums, 1855-75. The abstract of the concluding quinquennium, 1875-80, is intended to be embodied in the tables themselves, which have now to be prepared.

From Mr. Sutton's report it will be seen that the quinquennial returns for England and Wales, in the hands of the office, whether available or not for the preparation of tables, are in number,

Showing a progressive increase in the number of returns received since the passing of the Act of 1875, and the establishment of the Registry Office on a more satisfactory footing.

All this vast mass of statistical data, the Chief Registrar would point out, has been collected without a single prosecution having ever been instituted for the failure to send in a quinquennial return of sickness and mortality.

It is, moreover, remarkable that the return for 1880, the form of which was complained of by many societies as impracticable to fill up, has already been sent in in considerably larger numbers than any previous return, to the extent of 1,852

* This number has since been largely increased.

more

more than that for the quinquennium ending 1875, for which itself 1,516 more were received than of the previous return. Moreover, of the 10,755 returns in question, 5,537, or more than half, are actually available for the desired purpose. Mr. Sutton reports that "these returns, speaking generally, are neatly and carefully made; indeed many of them call for the highest praise, and must have cost the persons who made them, generally the secretary of the society, a great deal of time and trouble."

The table annexed to Mr. Sutton's report presents some interesting features. As respects the last quinquennium, it will be observed that out of 8,196 returns from ordinary societies, 3,799, or something over 46 per cent., are available for tables; but out of 2,559 returns from branches of orders 1,738, or close upon 68 per cent., are available, thus showing the great superiority of the latter. Among ordinary societies, the available returns exceed in number the unavailable ones in Berkshire, Cornwall, Dorset, Hants, Hereford, Herts, York, Northumberland, Somerset, Surrey, Salop, Anglesea, Cardigan, Carnarvon, Glamorgan, are equal in Gloucester and Merioneth, and fewer everywhere else; the southern and south-western counties, with a few Welsh ones, giving thus conspicuously the best results. As respects branches, the only counties in which the unavailable returns exceed the available ones, are Cheshire, Leicester, Monmouth, Northampton, Rutland, Westmoreland, Carmarthen, Carnarvon, Flint and Radnor, being equal in Cumberland, Northumberland, and Cardigan. Putting ordinary societies and branches together, 18 English counties and four Welsh have a balance of available returns, viz., Berkshire, Cornwall, Dorset, Durham, Essex, Gloucester, Hants, Hereford, Herts, Kent, Lincoln, Middlesex, Northumberland, Somerset, Surrey, Sussex, Warwick, and Wilts; Anglesea, Cardigan, Glamorgan, and Pembroke; one, Merioneth, has an equal number of both; and in 22 English and seven Welsh counties the unavailable returns predominate, viz., Beds, Bucks, Cambridge, Cheshire, Cumberland, Derby, Devon, Hants, Lancashire, Leicester, Monmouth, Norfolk, Northampton, Notts, Oxford, Rutland, Salop, Stafford, Suffolk, Westmoreland, Worcester, and York; Brecon, Carmarthen, Carnarvon, Denbigh, Flint, Montgomery, and Radnor. The English counties showing the largest proportion of available returns are Hereford, over 74 per cent.*; Herts, over 73; Dorset, over 72, and Hants, over 71.

It is to be trusted that no misapprehension will spread abroad as to the effect of the recent Act, through a confusion between the quinquennial return of sickness and mortality and the valuation. It is almost needless to say that nothing in the Act in the least affects the obligation of societies and branches, under Section 14, Sub-section 1(f), of the Act of 1875 to make every five years a valuation of their assets and liabilities.

III. TABLES OF SICKNESS AND MORTALITY.

The consent of the Treasury, under Section 10 of the Act of 1875, has been given in principle to the preparation of tables of sickness and mortality, and of contributions and benefits, to be founded on the data in the hands of the Central Office, supplied by the quinquennial returns of sickness and mortality during the 20 years, 1860-1880. It remains now for Parliament to provide the requisite funds for the preparation of these tables. The available materials are enormous, largely exceeding, in years of observed life, as Mr. Sutton's report shows, those of the Institute of Actuaries Collection of Life Offices Experience; the Manchester Unity of Odd Fellows Sickness and Mortality Experience, 1870; the Ancient Order of Foresters Sickness and Mortality Experience, 1875; and Mr. A. G. Finlaison's Friendly Societies Experience, 1850, put together. Results of the highest accuracy and importance, some perhaps at present unforeseen, may be expected from the scientific treatment of so vast a body of data, the equivalent to which may very probably never be again collected; and the Chief Registrar ventures to hope, in the interest of Friendly Societies and of the industrious classes generally, that means will be supplied, in no niggardly spirit, for the carrying out of a work, the maximum cost of which will probably not reach that of a single piece of ordnance of the largest calibre.

* Hereford is also the county which has sent in the largest proportionate number of valuations.

IV.-REGULATIONS.

Difficulties have sometimes occurred, especially in reference to dissolutions, through the requirement of the Regulations that instruments be forwarded in duplicate. For want of attention to or due understanding of this requirement, it has happened that the requisite original signatures, obtained perhaps with considerable trouble, have only been appended to one copy, the other being a mere transcript; and when the objection has been taken, it may have become practically impossible to procure a correct duplicate through death, emigration, &c., the only resource being an application to the Treasury for leave to dispense with it. To avoid the trouble of such references the following Regula tion has been approved of by the Treasury during the present year (25th May 1882), vesting a dispensing power in the Chief Registrar:—

81. The Chief Registrar may dispense with the obligation to supply a duplicate of any document, where such obligation is imposed only by the Regulations.

It will be seen hereafter that similar provision has been made under the Industrial and Provident Societies Act and the Building Societies Acts, under both of which the same inconveniences have arisen or may arise.

V.-SPECIAL AUTHORITIES.

The greater attention which since the passing of the Act of 1875 has been paid to the means of strengthening the financial position of Friendly Societies, combined latterly with the low price of the public funds, has led to a desire for more remunerative investments, and especially to a greater inquiry for mortgages on real or leasehold property. And as these can generally only be obtained for advances of a comparatively large amount, the branches of Orders especially have sought to effect the desired end by grouping the funds of the ultimate branches (generally called lodges or courts), in the hands of the intermediate ones (generally termed districts). The wording of the Act of 1875 does not, however, lend itself to this, Section 16 (3), enabling branches indeed to vest their property in the trustees of the society at large, if they do not wish it to be vested in their own branch trustees, but not enabling them to vest it in the trustees of another branch. The only mode of meeting the difficulty under the Act of 1875 is by each ultimate branch appointing the district trustees to be also its own trustees, and even this does not give satisfactory results in the case of mortgage securities.

The Act of 1876, however, appeared to open a way in the desired direction, by means of the provision in Section 4, which enacts that nothing in the Acts shall prevent any registered society or branch from contributing to the funds or taking part by delegates or otherwise in the government of any other registered society or branch. If a specially authorised society could be formed, for the express purpose of receiving and investing the funds of other societies or branches for their benefit, these might lawfully contribute their funds to it. Accordingly, the Sheffield and Hallamshire District of the Ancient Order of Foresters formed an Investment Association, which applied for and obtained a special authority (12 December 1881), confined indeed to itself, by which all the powers and facilities of the Friendly Societies Acts were extended to the purpose of receiving the funds of Friendly Societies and their branches and investing the same for their benefit, and the society in question was registered accordingly as a specially authorised society, under an unlimited special authority.

Since then the Greenwich and South Eastern District of the Order has formed a similar association, and on its application, the following purpose was specially authorised during the present year (1st June 1882):

The receipt of the funds of friendly societies and branches thereof, and the investment of the same for their benefit."

This special authority, it should be particularly observed, is not limited to any particular provisions of the Acts, so that societies registered under it will enjoy

all the privileges, such as exemptions from stamps, &c., of ordinary friendly societies. No mischief is likely to arise from this, as the societies in question are meant to form in reality part only of the internal machinery of other friendly societies. As the receipt and investment of funds is to be for the benefit, not of the society making the investment, but of the society contributing the funds, the former can only be a mere agent, and cannot degenerate into a profit-making company. The only point in which societies registered under the authority of 1st June 1882 will differ from ordinary registered societies will be that, in common with all other specially authorised societies, they will have to pay fees on the registry of their rules and amendments of rules.

VI. THE HOUSE OF COMMONS RETURN AS TO FRIENDLY SOCIETIES AND PAUPERISM.

A Return ordered to be printed on 25th August 1881, by the House of Commons, on the motion of Viscount Lymington, " of the paupers in the workhouses of England on the 31st day of March 1881, who having been members of a Benefit Society had then from any cause ceased to be members," was issued in the autumn of the year. The following is the summary of it :—

:

Number of unions in which there are indoor adult male paupers who have
been members of Benefit Societies

Number of unions the return from which is marked nil

Total Unions from which Return has been received

576

71

647

The total number of indoor adult male paupers who have ceased to be
members of Benefit Societies is

Of these have ceased to be members by reason of

(1.) Non-payment of contributions, withdrawal, or dismissal -
(2.) Breaking up of the society

Of the latter, the number who were members for less than 10 years is
For 10 years, and less than 20 years

For 20, and less than 30 years

For 30 years and upwards

11,304

7,391

3,913

A discrepancy in terms may at once be pointed out between the form of return as ordered, and the return presented. The return ordered is one "of the paupers in the workhouses," i. e., without distinction of age or sex. But the return is only one "of the number of adult male paupers." It must be presumed that the Board deemed such a return substantially to comply with the terms of the order, and that, therefore, the male paupers in the workhouses who had been members of Benefit Societies represented all the paupers there who had been such members.

Considered in itself, the return in question cannot be said to be of much intrinsic worth. It is founded, as such returns must necessarily be, on the statements of the paupers themselves, a class of witnesses for the most part essentially untrustworthy. It does not distinguish, and of necessity could not distinguish, between members of registered and of unregistered societies, i. e., between bodies having a legal constitution, and whose members have definite legal rights, and mere private clubs. In its bearing upon Friendly Society legislation, it is therefore absolutely valueless.

So far as it goes, however, it bears a remarkable testimony to the beneficial effects of the Friendly Society system generally. By the returns for 1878, the total number of members of registered Friendly Societies was 4,692,175. Allowing for non-returning societies, the real membership must have well exceeded 5,000,000. Although nothing can be said with certainty as to the membership of unregistered societies, this may fairly be estimated at 2,000,000 more, or 7,000,000 in all. Since the return is confined to "male members," let us suppose that only 4,000,000 out of the seven are adult males. The 11,304 pauper ex-members will then represent a proportion of only 0.28 per cent., or rather under one in every 354 of the total number of adult male members. Since

the

the proportion of paupers to the total population on 1st January 1881, was one in 28, or 3.6 per cent., it will be seen how very few comparatively are the adult male members of Friendly Societies who find their way to the workhouse.

But, in fact, the only figure which deserves to be placed against the total membership is that of the paupers whose societies have been broken up; since the fact of a pauper having left a society or been excluded from it tells primá facie only against him, and rather in favour of the society, to whose credit it is that it should be rid of members sufficiently improvident or incapable to drift into pauperism. Comparing then with the total male membership as before, it appears that the number who may probably have been reduced to pauperism by the failure of their societies is somewhat under 0.097 per cent., or less than one in every 1,023, an infinitesimally small proportion. It must, moreover, be observed that the figure 3,913 only represents those who have ceased to be members through the breaking up of the society, not who have been reduced to pauperism thereby. There is nothing to show that at the breaking up of the society the members did not receive a full and fair share of the funds, and that their subsequent drifting into pauperism was anything else than the result of their own folly.* It is the habitual experience of this office that registered societies, at least, are as apt to dissolve themselves because they have too much. money according to the views of the members, as because they have too little.

But, in point of fact, the circumstance that a pauper has been a member of a Friendly Society, or even of one that has broken up, proves as little as that he has been a member of a Joint Stock Company, or has exercised a particular trade, and that the company has been dissolved, or that any establishment at which the man has been employed has been broken up. If there are 11,304 paupers in our workhouses who have been tailors, or who have been shoemakers, nothing can be inferred from the mere figures as to the stability of the tailoring trade or the shoemaking trade.

The return, however, or at least that portion of it which gives the number of paupers who have ceased to be members of Benefit Societies through the breaking up of the society, acquires a real relative value when we place it beside a similar one which was made on the 19th August 1867, or, as nearly as possible 14 years previously, giving "the number of paupers in each union workhouse who have been members of Friendly Societies which have been dissolved or broken up." The return in question is in itself open, no doubt, to all the same objections as the later one, and may, therefore, be safely compared with it.

Here we are met at the outset by the remarkable fact that notwithstanding the increase in population between 1867 and 1881 (amounting to 2,820,198 by the censuses on which the returns are based), and what may be assumed to have been the parallel increase in the membership of Benefit Societies (though the ratio of increase in the latter has probably been the higher one), the absolute number of paupers is less by 102 in the return for 1881 than in that for 1867 (3,913 as against 4,015). Had the number increased in the same proportion as the population, viz., by 16:58 per cent., the figure for 1881 should have been 4,600.

It may, indeed, be objected that the return for 1867 may have more closely followed the order, and have comprised the total paupers who had been members of dissolved Friendly Societies, and not the adult male paupers only. It is certainly not impossible prima facie that this hypothesis may account for the difference. But when we come to compare the two returns in their details, the solution fails altogether, as the following tables show :

* In the only two cases in which inquiries have been made by Board of Guardians of this office, on the complaint of paupers that they had been reduced to destitution through the breaking up of their societies, it was found on investigation that they had been parties to the dissolutions and had received their shares.